• Former U.S. Senator Defends Apple's International Tax Strategy

    Former U.S. Senator John E. Sununu recently authored a newspaper column blaming the United States Congress and not Apple, for policies that allow corporations to avoid American taxes. Sununu who was a one-term Republican Senator from New Hampshire, is now a columnist for the Boston Globe and he published a piece blasting members of the U.S. Senate Permanent Subcommittee on Investigations for singling out Apple on taxes when the company is following the laws as written.

    Tim Cook was called before the subcommittee to explain why Apple has $100 billion in cash overseas. Most of the money is kept through subsidiaries in Ireland, which allows Apple to avoid billions of dollars in repatriation taxes if those funds were to be brought to the U.S. The current tax rate for bringing overseas cash back to U.S. shores is 35%, which is one of the highest tax rates of its kind in the world. Cook argued before the subcommittee that a dramatic revision of the U.S. tax code is necessary to address that issue. According to Sununu:

    Making the case for his company's decisions, Cook came off far better than the average witness on Capitol Hill. Perhaps it's easier to be blunt when you employ 60,000 workers in the United States, but lines like 'we pay all the taxes we owe — every single dollar' set the tone from the start.

    In public and private sector alike, a defensive posture makes people think you have something to hide. Cook's confidence contrasted dramatically with IRS managers pleading the Fifth before Congress the very next day.
    In Sununu’s eyes, the blame for companies such as Apple sheltering their funds overseas lies on Congress, which originally wrote the tax laws and has failed to update them to resolve these concerns. Other major American companies including Google and Yahoo also avoid paying U.S. taxes with subsidiaries in Ireland and some go even farther than Apple with holdings on Caribbean islands or bank accounts in the Cayman Islands.

    His stance is similar to that of U.S. Senator Rand Paul (R-Ken.), who serves on the Senate committee that questioned Apple CEO Tim Cook on his company’s tax practices. During the hearing, Paul criticized his colleagues for “bullying, badgering and berating” a great American success story when Apple has broken no laws. According to him:

    We should have brought in here today a giant mirror, so that we can look at the reflection of Congress, because this problem is created by the awful tax code.
    As of right now, we’ll have to wait and see what the verdict of the issue will be.

    Source: Boston Globe
    This article was originally published in forum thread: Former U.S. Senator Defends Apple's International Tax Strategy started by Akshay Masand View original post
    Comments 5 Comments
    1. unison999's Avatar
      unison999 -
      Politician selling out, yeah that never happened before.
      Problem is Cook said Apple paid taxes they owe, following the tax laws and in spirit of the law.
      In spirit you do not keep it outside U.S. to avoid paying taxes.
    1. zrevai's Avatar
      zrevai -
      Former One Term Politician, how can working for a newspaper be selling out?? He downgraded his job and it says nothing about him still being a Holder Of Office or running for one either which is what makes someone a Politician, aka running for or being elected to a Political usually public Fed/State/County/City office.
      Or did I miss the part of the article that said he was anything more than a Former Politician and a Current Journalist???

      And… Hell yes you keep your Cash where the Tax Law says you can keep it!!! Which current Tax Law completely allows an American Company to keep its Foreign Earned Cash in that other country and not pay any Taxes on it!!! If they brought it back to the US now under Current Tax Law they would end up paying 2x the Tax Rate on Foreign Cash as opposed to Local Cash (Money Earned In USA) which is between 10-15%!!!!

      If Congress would give US Companies a better incentive like a significantly reduced Tax Rate compared to the Current 35% then maybe US Based Companies would import More Cash From Foreign Earnings back Home!!!
    1. smigs's Avatar
      smigs -
      smh, our govnt is so out of the loop I swear. Ok so apple technically didnt break any rules, still paid billions in taxes, created jobs in the US, expanded their business as well as their facilities. Which in turn also helped the American Economy. Now if the IRS wants to point out tax havens, then maybe they should find the loop holes and plug them. Oh wait, that means that the lobbyist wont be making as much money. Disregard plugging holes. lol
    1. djaquapimp's Avatar
      djaquapimp -
      So, can anyone of you honestly say apple doesn't spend millions lobbying to keep laws In their favor?
    1. jwil736's Avatar
      jwil736 -
      Quote Originally Posted by djaquapimp View Post
      So, can anyone of you honestly say apple doesn't spend millions lobbying to keep laws In their favor?
      I think it was cited at $2.6M which is half of anyone else.
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